IRS demands identities of Coinbase users

The US Court allowed the IRS to require Coinbase the records of transactions.

The US Court allowed the IRS to require Coinbase the records of the transactions made between 2013 and 2015.

US.- A Northern California District Court judge ruled that the Internet Revenue Service (IRS) can ask the bitcoin wallet service Coinbase for the records of the transactions that happened between 2013 and 2015.

The IRS said in statement before the resulition: “The taxpayers being investigated have not been or may not be complying with U.S. internal revenue laws requiring the reporting of taxable income from virtual currency transactions.” The Principal Deputy Assistant Attorney General Caroline D. Ciraolo said that as the use of virtual currencies has grown exponentially, some have raised questions about tax compliance.

“Tools like these summon authorised today send the clear message to U.S. taxpayers that whatever form of currency they use, bitcoin or traditional dollars and cents, we will work to ensure that they are fully reporting their income and paying their fair share of taxes,” she added.